Principal Announces New $300 Million Share Repurchase Authorization

DES MOINES, Iowa--(BUSINESS WIRE)--
Principal Financial Group® (Nasdaq: PFG) today
announced that its board of directors has approved a new authorization
for the repurchase of up to $300 million of the company’s outstanding
common stock. As of March 31, 2018, approximately $96 million remained
under the company’s May 17, 2017$250 million authorization.

The repurchases will be made in the open market or through
privately-negotiated transactions, from time to time, depending on
market conditions. The stock repurchase program may be modified,
extended or terminated at any time by the board of directors. Principal
Financial Group, Inc. had approximately 286.4 million shares of common
stock outstanding as of April 25, 2018, per the company’s quarterly
report on Form 10-Q for the quarter ended March 31, 2018.

“This authorization supports our continued balanced approach to capital
deployment to create long-term value for our shareholders - through
common stock dividends, share repurchases, and strategic acquisitions,”
said Dan Houston, chairman, president and CEO of Principal®.
“As we previously announced on our 2018 outlook call, we anticipate
deploying $900 million to $1.3 billion of capital in 2018. This action
reflects our continued confidence in the underlying strength of our
diversified and integrated business model.”

Forward looking and cautionary statements

Certain statements made by the company which are not historical facts
may be considered forward-looking statements, including, without
limitation, statements as to non-GAAP operating earnings, net income
attributable to PFG, net cash flows, realized and unrealized gains and
losses, capital and liquidity positions, sales and earnings trends, and
management’s beliefs, expectations, goals and opinions. The company does
not undertake to update these statements, which are based on a number of
assumptions concerning future conditions that may ultimately prove to be
inaccurate. Future events and their effects on the company may not be
those anticipated, and actual results may differ materially from the
results anticipated in these forward-looking statements. The risks,
uncertainties and factors that could cause or contribute to such
material differences are discussed in the company’s annual report on
Form 10-K for the year ended Dec. 31, 2017, and in the company’s
quarterly report on Form 10-Q for the quarter ended March 31, 2018,
filed by the company with the U.S. Securities and Exchange Commission,
as updated or supplemented from time to time in subsequent filings.
These risks and uncertainties include, without limitation: adverse
capital and credit market conditions may significantly affect the
company’s ability to meet liquidity needs, access to capital and cost of
capital; conditions in the global capital markets and the economy
generally; volatility or declines in the equity, bond or real estate
markets; changes in interest rates or credit spreads or a sustained low
interest rate environment; the company’s investment portfolio is subject
to several risks that may diminish the value of its invested assets and
the investment returns credited to customers; the company’s valuation of
investments and the determination of the amount of allowances and
impairments taken on such investments may include methodologies,
estimations and assumptions that are subject to differing
interpretations; any impairments of or valuation allowances against the
company’s deferred tax assets; the company’s actual experience could
differ significantly from its pricing and reserving assumptions; the
pattern of amortizing the company’s DAC and other actuarial balances on
its universal life-type insurance contracts, participating life
insurance policies and certain investment contracts may change; changes
in laws, regulations or accounting standards; the company may not be
able to protect its intellectual property and may be subject to
infringement claims; the company’s ability to pay stockholder dividends
and meet its obligations may be constrained by the limitations on
dividends Iowa insurance laws impose on Principal Life; litigation and
regulatory investigations; from time to time the company may become
subject to tax audits, tax litigation or similar proceedings, and as a
result it may owe additional taxes, interest and penalties in amounts
that may be material; applicable laws and the company’s certificate of
incorporation and by-laws may discourage takeovers and business
combinations that some stockholders might consider in their best
interests; competition, including from companies that may have greater
financial resources, broader arrays of products, higher ratings and
stronger financial performance; a downgrade in the company’s financial
strength or credit ratings; client terminations, withdrawals or changes
in investor preferences; inability to attract and retain qualified
employees and sales representatives and develop new distribution
sources; an interruption in telecommunication, information technology or
other systems, or a failure to maintain the confidentiality, integrity
or availability of data residing on such systems; international business
risks; fluctuations in foreign currency exchange rates; the company may
need to fund deficiencies in its “Closed Block” assets; the company’s
reinsurers could default on their obligations or increase their rates;
risks arising from acquisitions of businesses; and loss of key vendor
relationships or failure of a vendor to protect information of our
customers or employees.

Principal helps people and companies around the world build, protect and
advance their financial well-being through retirement, insurance and
asset management solutions that fit their lives. Our employees are
passionate about helping clients of all income and portfolio sizes
achieve their goals – offering innovative ideas, investment expertise
and real-life solutions to make financial progress possible. To find out
more, visit us at principal.com.

1 Principal, Principal and symbol design and Principal
Financial Group are trademarks and service marks of Principal Financial
Services, Inc., a member of the Principal Financial Group.